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NSAA Economic Analysis Results:

Breakdown of the 2015–16 Season

By Dave Belin, RRC Associates

fortunes varied dramatically by geographic region of the
country. Snowsports visits were up in the western half of
the country and down in the eastern half. Both the Pacific
North (up 110.3 percent) and Pacific South (up 55.1 per-
cent) rebounded from a poor 2014-15 season, and the
Rocky Mountain region had its best season ever in terms
of snowsports visits (up 7.3 percent). The strong perfor-
mance in these three regions was offset by the difficult sea-
son for ski areas in the eastern half of the country. Large
losses were experienced in the Southeast (down 30.3 per-
cent), Northeast (down 29.9 percent), and Midwest (down
21 percent).
The financial results for the 2015-16 season reflect
many of the same patterns as the snowsports visits results.
The western half of the country performed quite well finan-
cially, while ski areas in the eastern half of the nation gener-
ally posted weaker results compared to the season prior.
Some summary information from the 2015/16 fiscal
year includes:
• An increase in average gross revenue per resort to $32.7
million per resort (up 8.6 percent) and an increase in
IN BOTH SKIING AND in business, it is always important to revenue per visit (up 5.1 percent to $106.03).
look where you are going. At the same time, it’s important to • Revenue in most departments was up; expenses were
know where you’ve been. also up, but to a lesser degree as compared to revenue.
Even though the 2016-17 season is drawing to a close, As such, profit margins improved in the industry.
it’s important to look back at the financial performance of • Relatedly, returns on assets and equity both improved
2015-16. Now that the NSAA Economic Analysis of US Ski nationally.
Areas from the 2015-16 fiscal year is finalized, we can do just • Much lower levels of debt were recorded in certain
that. A total of 103 ski areas from across the country submit- regions of the country, accompanied by lower interest
ted a completed Economic Analysis survey for both the 2014- payments, causing the Health ratio (debt to cash flow)
15 and 2015-16 seasons, allowing for an “apples to apples” to decline (improve).
comparison across the two fiscal years.
The article in the last issue of the Journal focused on Some additional observations about the data gathered in the
some overview financial information; this article will cover Economic Analysis report, which is available from NSAA,
additional key areas of interest, including long-term revenue include the following.
per visit, long-term departmental revenue per visit, summer
revenue, and characteristics of profitable ski areas. Revenue Per Visit
The 2015-16 season recorded a final estimate of 52.8 Long-term Increase in Gross Revenue per Visit. Over the
million snowsports visits, down 1.5 percent from the 2014- past decade, the level of gross revenue per visit has increased
15 season. As most ski area operators will recall, resort from $74.94 in 2006-07 to $106.04 this past season (figure

28 | NSAA JOURNAL | SPRING 2017